Given this seems more like a portable that connects to the TV then a actual console, I don't think it is a bad idea to limit its power rather then trying to outgun PS4 or the future more powerful iterations of the PS4 and Xbox One.
The problem will lie in how they are going to present it. Hopefully the nonsense about detachable controllers is just that. I can't see anyone in their right mind thinking that will work, especially given how it would limit potential controller buttons. The NX as a portable that can play games on the tv has potential but only if they choose the right form factor. The lower abilities will make it attractive to more indie and smaller Japanese publishers which have been the only Nintendo third party support it has gotten in years and in truth may just be enough to win over Japan given the state of its console market. However to thrive they will need to think about how to appeal to gamers that aren't already 3DS/Wii U owners and tap into people that haven't given a portable a shot in years.
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